Some of the world’s biggest natural-gas producers are trying to seize on changes in how the fuel is bought and sold to create an OPEC-style group to influence prices.
Leaders of Nigeria and Algeria, at a recent forum in Tehran, said gas producers should come together and intervene in prices. Nigeria’s President Muhammadu Buhari called for “the formulation of a sustainable pricing mechanism that will guarantee fair and reasonable prices for both producers and consumers.”
Opening and shutting the spigots at relatively short notice to influence prices has been long-standing policy for the Organization of the Petroleum Exporting Countries, where most cargoes are sold on a spot basis. But such practice is a novel idea for gas producers, where individual long-term contracts dominate and therefore supply cannot be altered easily by coordinating producers.